Mariner Health Group, Inc. v. Mariner Health Care, Inc. (In Re Mariner Post-Acute Network)

MEMORANDUM OPINION 1

MARY F. WALRATH, Bankruptcy Judge.

Before the Court are the Cross Motions for Summary Judgment filed by Mariner Health Care, Inc. (“MHC”) and Arthur Stratton, Jr., M.D., David M. Hansen, Paul J. Diaz, and Douglas Stone (“the Former D & Os”). For the reasons set forth below, the Court will deny MHC’s Motion and grant the Former D & Os’ Motion.

I. BACKGROUND

On April 13, 1998, the parent of MHC, Paragon Health Network, Inc. (“Paragon”), entered into an agreement (“the Merger Agreement”) with Mariner Health Care Group, Inc. (“MHG”), by which MHC was merged into MHG. This…